Gold prices fall from record highs as Powell, rate cut in focus By Investing.com

Investing.com– Gold prices edged higher in Asian trade on Friday, but were retreating from the previous session’s record highs as caution ahead of a speech by Federal Reserve Chairman Jerome Powell to support the greenback.

The yellow metal hit record highs earlier this week amid growing belief that the Fed will begin cutting interest rates in September. Although prices retreated amid some profit-taking, gold remained relatively well bid.

It was up 0.4 percent at $2,495.52 an ounce, while December expiry was up 0.6 percent at $2,530.70 an ounce by 01:24 ET (0524 GMT). Spot prices fell slightly this week after hitting a record high of $2,531.72 an ounce.

Powell’s address on tap amid rate cut speculation

is scheduled to speak at the Jackson Hole Symposium later Friday, possibly offering more clues about the Fed’s plans to begin cutting interest rates.

Markets are generally pricing in a September rate cut, though it showed traders somewhat split between a 25 or 50 basis point cut.

Bets for a deeper rate cut were bolstered by weak labor force data released earlier in the week, which showed a sharp downward revision to payrolls data over the year to March 2024.

The reading indicated that recent signs of cooling wage growth were from a much weaker position than initially thought and increased concerns about a slowdown in the US economy.

The prospect of slower growth and lower interest rates bode well for gold given its safe-haven nature. Lower rates also present a lower opportunity cost of buying bullion.

Other precious metals rose on Friday but also had an average weekly performance. rose 0.7% to $959.75 an ounce, while rose 0.9% to $29.290 an ounce.

Copper prices rise, set for second week of gains

Among industrial metals, copper prices rose on Friday and were set for a second straight week of gains as they staged an extended rebound from lows hit in early August.

The London Metal Exchange benchmark rose 0.8 percent to $9,204.50 a tonne, while on the month it rose 0.7 percent to $4.1655 a pound. Both contracts rose between 0.5% and 1% this week.

Copper posted a two-week rebound from August lows, helped by a combination of bargain buying and some improvement in sentiment toward top importer China.

Markets are also betting that lower US interest rates will help improve global copper demand.